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Power Tool Sales and Marketing Strategies for B2B Retailers Power tools are vital for both consumers and professionals. Despite a slowdown in 2021 due to the COVID-19 virus, demand remains close to or at pre-pandemic levels. In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely behind. Both are competing against power tools made in China. Tip 1: Make a commitment to a brand Many manufacturers of industrial products put a higher priority on sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication and detailed knowledge of the product. This type of communication is not suitable for emotional marketing strategies. But, companies that produce industrial tools need to rethink their marketing strategy. The digital world has raced past traditional manufacturers who rely on a few retailers and distributors to sell their products. Brand loyalty is a major element in the sale of power tools. When a customer is committed to a brand and is loyal to a brand, they are less prone to the messages of competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to friends and family. To be successful to be successful in the United States market, you must develop a well-planned strategy. This includes adapting your tools to local needs and positioning your brand in a manner that is competitive and leveraging marketing platforms and distribution channels. Collaboration with local authorities as well as associations and experts is also essential. By doing so you can be sure that the power tools you purchase conform to the laws of the country and standards. Tip 2: Know Your Products In a market where product quality is so important, retailers must be aware of the products they sell. This will enable them to make informed decisions about the products they offer their customers. This knowledge could also be the difference between a good sale and a bad one. Knowing which tool is perfect for a project will aid in matching the right tool to the requirements of your customer. You'll build trust and a sense of loyalty among your customers. It will also give you the confidence that you're providing a complete solution. In addition, understanding the trends in DIY culture will help you understand what your customers want. For instance increasing numbers of homeowners are completing home renovation projects requiring the use of power tools. This could lead to a rise in the sales of power tools. According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this, both online and in-store purchases are increasing. Tip 3: Offer Full-Service Repair Most consumers purchase power tools to replace the broken one or tackle a new project. Both of these can be used to increase sales and add-on sales. According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases for power tools were the result of a planned replacement. These customers typically require additional accessories or need to upgrade to higher performing models. Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords and power cords of their power tools as time passes. Making sure online power tools are up to date with these essentials will allow your customer to make the most of their investment. Technicians consider three key items when purchasing power tools the application, the way it will be used and safety. These aspects help technicians make informed choices about the best tools to use in their repairs and maintenance work. This helps them improve the performance of their tools and lower the cost of ownership. Tip 4: Stay up-to-date with the latest technologies. For example, the latest power tools offer advanced technology that enhances the user experience and sets them apart from other brands that still rely on old battery technology. B2B wholesalers that carry and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced. Karch's business, with more than 30 years of experience, and a 12,000 square foot tool department, is a testament to the importance of staying current with the latest technologies. He says that manufacturers are constantly changing their product designs. “They used to hold their designs for 5 or 10 years but now they change their designs every year.” B2B wholesalers must not only take advantage of the latest technologies, but also enhance their existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue due to prolonged use. These features are crucial for many professional contractors who use the tools over a long period of time. The market for power tools is divided into professional and consumer groups. This means that the biggest players are constantly working to improve their designs and create new features to reach a larger public. Tip 5: Create a Point of Sales The e-commerce landscape has transformed the power tools market. Data collection methods have improved allowing business professionals to get a better understanding of the market. This helps them develop more effective inventory and marketing strategies. Point of sale (POS) information can, for example, allow you to track the types of projects that DIYers are working on when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and extras. It also allows you to anticipate the requirements of your clients and ensure that you have the correct products available. Furthermore, transaction data allows you to detect trends in the market and adjust production cycles accordingly. You could, for instance make use of this information to monitor changes in your retail partners' and brand's' market shares. This allows you to align product strategies to consumer preferences. POS data can also be used to optimize levels of inventory, reducing the risk of stocking up. It can also help you to assess the effectiveness of promotional campaigns. Tip 6: Establish an Point of Service Power tools are a complex market with high profits that requires a substantial amount of marketing and sales efforts to remain in the game. In the past, getting a competitive advantage in this market was achieved through pricing or positioning products. However, these strategies are not as effective in the current world of omnichannels where information is easily communicated. Retailers that focus on customer service are more likely to retain customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. In the beginning, his store featured various brands, but when he began to listen to the customers of contractors, he learned that most were loyal to a particular brand. Karch and his staff ask their customers what they plan to do with a tool before showing them the options. This gives them the confidence to recommend the appropriate tool for the job and builds trust with customers. Customers who know their product well are less likely to blame their retailer for a tool malfunction on the job. Tip 7: Make an effort to be a Point of Customer Service The market for power tools has become a highly competitive category for hardware retailers. The retailers that have had the most success in this market tend to have a strong commitment to a particular brand instead of simply carrying a selection of manufacturers. The amount of space a retailer must dedicate to this category could also affect how many brands it can carry. When customers visit a store to purchase an electric tool, they often need help selecting a product. Sales associates can provide the best guidance to customers looking to replace a broken device or completing an upgrade project. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions to make an offer. They begin by asking questions about what the customer is planning to use the tool, he says. “That's the way to determine what kind of tool they require,” he says. Then they ask about the experience of the customer with different types of projects as well as the project. Tip 8: Create an End of Warranty Power tool manufacturers vary greatly in their warranty policies. Some companies offer a complete warranty, whereas others are more limited or do not offer warranties for certain tools. Before making a purchase it is essential that retailers understand the differences. Customers will only buy tools from companies that provide a warranty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an in-house repair shop that handles 50 kinds of tools. He has learned over time that a lot of his contractors are loyal to their brands, which is why he prefers to focus on only a few brands rather than offer a wide range of products. He is also happy that his employees have the ability to meet with vendors one-on-1 to discuss new products and exchange feedback. This personal contact is crucial because it builds trust between the store's customers and employees. Good relationships with suppliers could even result in discounts on future purchases.